[Research Contribution] Determinants of Early Retirement Intentions: A Psychological, Social, and Workplace Perspective

16 Oct, 2026

Keywords: Early retirement; Theory of Planned Behavior; work pressure; family pressure; financial literacy; developing countries; structural equation modeling.

As populations age and labor markets continue to evolve, early retirement has become an increasingly important issue due to its implications for labor supply, individual well-being, and workforce sustainability. But what actually drives people to consider early retirement? Is this decision shaped solely by financial circumstances and health, or is it also influenced by family pressures, workplace conditions, and psychological and social factors? Against this backdrop, a research team from UEH Mekong, University of Economics Ho Chi Minh City (UEH), examined the psychological, social, and workplace factors that contribute to early retirement intentions.

Early Retirement: A Complex Economic and Social Challenge in the Modern Labor Market

Early retirement has become an increasingly important concern in the modern labor market, as it affects not only individual workers but also organizations, pension systems, and workforce sustainability. In the context of population aging, increasing life expectancy, and labor shortages, governments and employers are encouraging older workers to remain employed for longer. Nevertheless, many people still choose to retire before the statutory retirement age due to factors such as stress, health problems, family responsibilities, and unfavorable working conditions. Early retirement is therefore no longer merely a personal choice, but an economic and social issue that requires comprehensive investigation.

The study “Determinants of Early Retirement Intentions: Psychological, Social, and Workplace Perspectives” seeks to clarify the factors that shape early retirement intentions. While previous studies have primarily focused on financial and demographic factors, this research broadens the perspective by examining psychological, social, and workplace factors simultaneously, including health, work pressure, and family responsibilities. The findings provide a basis for organizations to improve working conditions for older employees, retain their experience and expertise, and support policymakers in developing more appropriate retirement policies that balance economic stability with employee well-being.

Why Do People Consider Early Retirement: A Multifactor Analysis of External and Internal Influences

The study conceptualizes early retirement as a multidimensional decision influenced by both external and internal factors. Drawing on the Life Course Perspective, it considers external factors such as work pressure and family pressure, which are shaped by life experiences, transitions between life stages, and social contexts. Work pressure relates to stress, workload, and working conditions, while family pressure stems from caregiving responsibilities and family expectations. These factors highlight that retirement decisions cannot be separated from workers’ life circumstances and personal relationships.

From a psychological perspective, the study applies the Theory of Planned Behavior (TPB) to examine three factors: attitudes toward retirement, subjective norms, and perceived behavioral control. Attitudes reflect whether individuals view retirement positively or negatively; subjective norms capture the influence of expectations and approval from people around them; and perceived behavioral control refers to individuals’ confidence in their ability to plan for and manage the retirement process. Together, these factors help explain how people form retirement intentions and assess their ability to act on those intentions.

One of the study’s notable findings is that family pressure has a strong influence on early retirement intentions. Responsibilities such as caring for aging parents, supporting children, or spending more time with loved ones may encourage workers to leave the labor market earlier. This suggests that retirement decisions are driven not only by personal needs but also by family responsibilities and shared priorities.

Subjective norms and perceived behavioral control also play significant roles. The expectations of friends, colleagues, and others may influence how individuals perceive retirement. At the same time, when workers have prepared financially, can access the necessary resources, and feel confident about adapting to life after retirement, they may be more likely to view early retirement as a feasible option.

By contrast, work pressure and attitudes toward retirement have weaker and less consistent effects. This suggests that early retirement intentions do not depend on any single factor but instead emerge from the interplay of family circumstances, social influences, personal resources, and workplace conditions.

The study also identifies financial literacy, job satisfaction, and health status as individual characteristics that should be considered when examining early retirement intentions. Financial literacy helps individuals plan proactively for retirement; job satisfaction tends to reduce early retirement intentions; and declining health may encourage workers to leave the labor market.

From Understanding Early Retirement Intentions to Practical Solutions

Theoretically, the study integrates psychological, social, and occupational perspectives to explain early retirement intentions. Its findings clarify the roles of attitudes, subjective norms, and perceived behavioral control while also considering individual characteristics such as financial literacy, job satisfaction, and health status. In doing so, the research broadens the understanding of early retirement decisions, particularly in developing countries.

In practical terms, the findings highlight the roles of governments and businesses in helping workers prepare for retirement. Governments should strengthen financial education and encourage retirement planning so that workers can take a more proactive approach to preparing their financial resources. For businesses, flexible working arrangements, phased retirement options, career transition support, and physical and mental health programs may help employees prepare more effectively for this stage of life. Human resource departments can also organize career counseling sessions and retirement planning workshops to improve employees’ retirement readiness.

Overall, the study shows that early retirement intentions are associated with a range of psychological, family, social, and workplace factors. These findings not only enrich the academic understanding of retirement decisions but also point to opportunities for policymakers, businesses, and workers to work together in supporting better retirement preparation.

View the full research paper “Determinants of Early Retirement Intentions: A Psychological, Social, and Workplace Perspective” HERE.

Authors: Truong Thi Nhi, Tran Ngoc Hoa - University of Economics Ho Chi Minh City (UEH); Nguyen Thi Hong Nga, Le Minh Triet, Nguyen Nghiem Thai Minh - Vinh Long University of Technology and Engineering (VLUTE)

This article is part of the series disseminating research and applied knowledge under the message “For a More Sustainable Mekong,” within the “Research Contribution For All” program conducted by UEH. UEH respectfully invites readers to stay tuned for the next edition of the UEH Research Insights newsletter.

News, photos: Authors, Department of Admissions - Communications UEH Mekong, Department of Communications and Partnerships UEH